Final answer:
The statement is false. Under the allowance method, net income is not directly affected when a specific receivable is written off because the bad debt expense was already recognized when the allowance was estimated and recorded.
Step-by-step explanation:
True or False: When the allowance method for accounting for uncollectible receivables is used, net income is reduced when a specific receivable is written off. The statement is False. Under the allowance method, a company estimates future uncollectible accounts and records an adjusting entry to bad debt expense and a corresponding allowance for doubtful accounts, which is a contra-asset account, at the end of each accounting period before any specific account is written off. When an actual receivable is found to be uncollectible and is written off, the company debits the allowance account and credits accounts receivable, which does not affect net income because the expense was already recognized in the period when the allowance was initially recorded.